Gas refinery operator Surya Esa Perkasa is targeting to collect up to US$50 million in sales next year supported by its recently upgraded liquefied petroleum gas (LPG) processing facility.

The target is a 25 percent increase compared to the company’s projection for this year, which is expected to hit around US$40 million.

Surya Esa corporate secretary Kanishk Laroya said recently that the company’s upgraded refinery would boost its daily gas production by more than 50 percent, from 120 to 190 tons. This would enable the publicly listed company to produce up to 60,000 tons of LPG throughout 2015.

The maximum output Surya Esa has been able to produce this year is 44,000 tons of LPG.

The capacity upgrading project started in 2012 and absorbed $21 million of investment. “With increasing gas output, we hope our sales will reach $50 million next year,” Laroya said

As of the first nine months of 2014, Surya Esa generated $32.56 million, up by 5.47 percent from the same period last year. Its net profit grew by 7.7 percent to $10.49 million.

The company has yet to disclose how much capital expenditure it plans to disburse next year. Surya Esa vice president for finance Prakash Bumb meanwhile, said that the company planned to focus on its ammonia plant in Luwuk, Central Sulawesi, which is currently under construction.

The plant, to be run by Surya Esa subsidiary Panca Amara Utama, is designed to produce up to 700,000 metric tons of ammonia per annum and is expected to start commercial production by the end of 2016.

Total investment for the plant is estimated to hit $800 million.

The company secured early this year a $509.9 million syndicated loan provided by the International Finance Corporation (IFC) to finance the project.

The loan is IFC’s biggest ever investment in Indonesia.

Laroya said ammonia output from the company’s plant would mainly be sold to the domestic market. “There’s a captive market here. We’re currently meeting with potential buyers from both domestic and foreign markets,” he said. “This is a megaproject; of course, we’ve already spotted our potential buyers.”

Surya Esa has signed a sales-and-purchase agreement for its ammonia with joint operating body Pertamina Medco Tomori Sulawesi, with a contract value of $1.4 billion.

The deal will mandate Surya Esa to supply 55 million standard cubic feet per day to Pertamina Medco. The delivery will begin in the fourth quarter of 2016 up to 2027.

Meanwhile, Laroya said the company had decided to postpone its plan to issue $35 million in convertible bonds this year as the Financial Services Authority (OJK) had yet to give a go.

Surya Esa, however, is optimistic that the bond issuance plan will be executed next year.

“Perhaps it [OJK’s decision] was made after learning about the scheme we offer. The limit for convertible bonds is two years, but we want it to be between four and six years,” he explained.

The convertible bond is equal to 110 new shares of 9.09 percent of the company’s paid up capital, with an interest rate of 0.5 percent a year. Shares are priced at Rp 3,183. - See more at: http://www.thejakartapost.com/news/2014/12/26/surya-esa-aims-25-percent-revenue-increase-next-year.html#sthash.sUa9Lvho.dpuf

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